Why IndiGo and Air India are racing to lock in loyal customers
IndiGo, operated by InterGlobe Aviation BluChip program Data from India’s aviation regulator shows 107 million passengers in calendar year 2025 in September 2024. This means that nearly 1 in 10 passengers flying with IndiGo are members of the loyalty program.
Air India, which restarted its loyalty program in November 2024, has 10 million members Maharaj ClubThis number increased from two million in January 2022, when the Tata Group acquired the airline. Tata Sons, the private aviation industry’s holding company, has given a boost to the frequent flyer program by merging Vistara with Air India, both full-service carriers, in November 2024.
A single loyalty program for Air India and its budget carrier Air India Express is expected to be completed by the end of this calendar year, according to an executive from Air India and Air India Express.
Mint could not independently determine the number of frequent flyers of Air India Express.
“Trials on Air India and Air India Express’ loyalty program are currently underway, with a wider rollout expected in the second half of 2026. This will be a phased merger,” a second executive said. Both executives asked not to be identified.
IndiGo, Air India and Air India Express had no comment.
Points sharing across AIX and AI
In the first phase of loyalty program integration, Air India customers will be able to redeem Maharaja Club points on Air India Express flights. In the second phase, Air India Express customers will be able to redeem NeuPass points across the Air India network, which will significantly increase payment options. NeuPass is a Tata Group rewards program that collects points on spending on its brands.
The integration is critical as an increasing share of domestic and short-haul routes is being shifted from Air India to Air India Express as part of Tata’s strategy to position Air India as a premium, three-class carrier focused on major metro markets.
Currently, Air India Express flies to more destinations in India than any full-scale carrier. This means that the majority of passengers will not be able to earn points on their travels as Maharaja Club points are earned only on Air India and Star Alliance flights and not on Air India Express flights.
“Air India Express integration was a must-do item. This is because a portion of the network will be acquired from Air India and handed over to Air India Express to operate flights. Air India plans to serve premium markets (Mumbai, Delhi and Bengaluru) where the three-class airline configuration can be accommodated,” said Ajay Awtaney, founder of Indian loyalty program analytics website LiveFromALounge.com.
Air India is also positioning loyalty as part of its broader premium transformation, expanding its Maharaja Lounge concept into more ‘luxury’ experiences with redesigned spaces, upgraded dining offerings and partnerships with premium brands. It is planning new lounges in international hubs such as San Francisco and New York.
BluChip @ 8% of spend
Meanwhile, IndiGo is taking a different approach. The BluChip program is a simple, revenue-based model that offers eight points each. ₹$100 spent; Free tickets can be used for seat selection, extra baggage and priority services. One important difference is that points do not expire for active members.
The airline introduced a “Stretch” product, allowing customers to upgrade to these premium seats using a mix of cash and points. Launched in November 2024, the business class product is currently available on eight domestic and nine international routes, with expansion planned in the coming months.
“By expanding Stretch to a total of 65 aircraft, we are providing broader network options for business and premium customers,” IndiGo CEO Pieter Elbers said during the airline’s January 2026 earnings call.
These premium seats have also started to be used on long-haul flights to Athens, which were introduced a few weeks ago.
IndiGo has hired loyalty and payments expert Nik Laming as a consultant and is exploring partnerships that would allow customers to earn BluChip points beyond flights through banks, fintech firms and lifestyle brands such as Nobero.
Loyalty comes to the fore
According to a January 2026 report by global market analysis company Market Glass Inc., the global market for travel loyalty programs was valued at $29.1 billion in 2024 and is expected to reach $52.6 billion by 2030, at a CAGR of 10.4%.
Industry executives say loyalty programs have become critical as airlines face pressure on ticket prices and rising costs even as passenger growth slows. India’s domestic air traffic growth has fallen to 3.5% in 2025 from 6% in the previous year.
“For Air India, scale remains the biggest advantage once the group-wide loyalty program is fully integrated. The challenge for IndiGo will be to drive engagement without a world-class long-haul network,” said Mark D. Martin, founder of aviation consultancy Martin Consulting.
Still, he said IndiGo’s rapid progress reflects a deeper change.
“Five years ago, loyalty wasn’t even part of IndiGo’s strategy. Today, it’s at the heart of how the airline thinks about long-term growth and repositioning itself as a purpose-built airline,” Martin said.
To put the numbers into context, Air India Group flew 45 million passengers in 2025, with a 27% market share; Less than half of market leader IndiGo, which carries 107 million passengers (64% of the market), shows December data from regulator Directorate General of Civil Aviation.
